Unpaid cheque to suppliers

Hi

Very annoyingly, our bank has not honoured a chque to a supplier - despite there being completely adequate funds in our account. Barclays can expect a call from me.

Quention is, what is the best way to process this in Quickfile. Its not a receipt from a cusomer of course, neither is it a refund from a supplier.

One way could be to delete the original cheque and the unpaid cheque entries, but then, although the figures would tally, the daybook will no longer be a complete record of bank transactions.

What is the recommended procedure please.

Very many thanks

Mike

Hello Mike

You could go with your solution if the cheque is not locked for Vat purposes or the alternative would be to reverse the entries processing a refund.

To replicate what has happened in real life, deleting would probably be the best option as the cheque was never cashed and re issuing a new cheque may be the best option.

Please bear in mind, I am not an accountant nor bookkeeper but those are generally the only two options for this type of scenario.

How did you record this in the first place? Are you saying that the money left your account but was then later returned by the bank, or did the cheque never clear in the first place?

If the money went out (tagged as payment to a supplier) and then back in, then what I’d do is click through to the original payment record (find the tagged transaction, click the green button, then follow the link on the word “payment” in the popup), then “detach” the payment from the purchase and “refund balance”. This will return the money to your account and revert the purchase to “unpaid” so you can pay it by another means.

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The paymnet appeared as a deduction from our account yeterday monring. This was then tagged by me to the purchase invoice.
This morning, an ‘Unpaid Cheque’ transaction appeared in respect of the same cheque.

What I have decided to to is create an account in the Nominal Ledger called ‘Barclays Banking Errors’. I then detagged the original allocation to the purchase invoice and then tagged it, and the unpaid item to the ‘Barclays Banking Errors’ account.

Barclays in the meantime are unable to explain why this has happened. I suspect that, in the drive towards online accounting, that they are attempting to make cheques as unusable as possible.

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